Relocating your business can be an exciting milestone—whether you’re expanding, downsizing, or simply finding a better location for your operations. However, the legal complexities of moving from one commercial premises to another can catch even experienced business owners off guard.

We recently moved our own offices from High Street to 19 Lawson Street, Penrith (just a hop, skip, and jump away), and the experience reminded us of the essential legal considerations that every business owner should plan for when relocating. Here’s your practical guide to navigating the legal side of your business move.

Plan Your Exit Strategy: Understanding Makegood Obligations

Your current lease almost certainly includes “makegood” clauses that dictate how you must leave the premises. These obligations can range from simple tasks to significant restoration work, and the costs can be substantial if you’re not prepared.

Simple makegood requirements might include removing your furniture and giving the space a fresh coat of paint. Complex makegood obligations could require you to return the premises to a bare shell—removing all fixtures and fittings, restoring surfaces to their original condition, and repairing any damage caused by your modifications.

Before you start planning your move, review your current lease carefully to understand exactly what’s required. This isn’t the time for surprises, as makegood costs can run into thousands of dollars depending on the extent of modifications you’ve made to the premises.

Secure Your Insurance Before Day One

Most commercial leases require proof of public liability insurance and other specific coverages (such as plate glass insurance) before you can take occupation of your new premises. While insurance policies can be arranged relatively quickly with the right broker, you shouldn’t leave this to the last minute.

Start discussions with your insurance broker well before your lease commencement date. This ensures there’s no delay in accessing your new premises and that you’re properly protected from day one.

Sort Out Your Security Requirements Early

Commercial leases typically require some form of security to protect the landlord’s interests. This usually takes the form of either:

• A cash security deposit (often equivalent to several months’ rent)
• A bank guarantee for the same amount

If you’re planning to provide a bank guarantee, allow at least one to two weeks for arrangement, sometimes longer depending on the complexity. Your bank will require security to issue the guarantee—this might be a cash deposit or other security such as your family home.

Don’t underestimate the time this process can take. Planning ahead ensures you’re not scrambling to meet lease requirements at the last minute.

Get Your Lease Reviewed Before You Sign

This might seem obvious, but you need a signed lease before you can take occupation of your new premises. Sometimes there’s only a short window between agreeing to lease a property and the commencement date.

As soon as you enter negotiations, contact your lawyer. The most prudent approach is to obtain legal advice about the lease terms and have your lawyer negotiate or clarify any provisions as necessary. What looks straightforward on the surface might contain clauses that could create problems down the track.

Navigate Signage and Development Requirements

Planning to install new signage at your premises? You’ll typically need permission from the landlord, and in some cases, you might require development consent from your local council through a development application or complying development certificate.

These processes require planning and cannot be done overnight. Communicate with your landlord early about your signage plans and speak to a planning consultant or your lawyer about whether council consent is required.

Plan Your Fitout and Modifications

If you’re considering fitout works such as installing partitioning, building a mezzanine, constructing internal offices, or installing kitchen facilities, you’ll usually need the landlord’s consent. The landlord will typically want to see detailed plans and specifications and will require that work is carried out by appropriately qualified tradespeople.

Like signage, fitout approvals take time. Factor this into your moving timeline to avoid delays in setting up your new operations.

Communicate Your Move to Clients and Customers

If you’ve been in your current location for an extended period, your clients and customers have become accustomed to finding you there. Communicate your move in advance wherever possible to prevent frustration and potential loss of business.

Consider updating your website, sending notification emails, posting on social media, and placing temporary signage at your old location directing people to your new address.

Consider Lease Overlap for a Smooth Transition

Where possible, try to arrange some overlap between the end of your existing lease and the start of your new lease. Even a week or two of overlap can make the difference between a stressful rush and a manageable transition.

This overlap period allows you to move gradually, set up your new premises properly, and ensure business continuity without the pressure of an immediate vacation deadline.

The Key to Success: Early Planning

Successful business relocation comes down to preparation and professional guidance. Start conversations with your lawyer, insurance broker, existing property manager, and new property manager as soon as you begin considering a move.

Each element of your relocation—from understanding makegood obligations to arranging insurance and security—requires time and coordination. By planning ahead, you’ll minimise disruption to your business operations and avoid costly last-minute complications.

Need Help with Your Business Move?

Moving your business premises involves numerous legal considerations that require careful planning and expert guidance. Our experienced commercial law team understands the complexities of business relocations and can help ensure your move proceeds smoothly.

Whether you need lease review, advice on makegood obligations, or guidance on development requirements for signage and fitouts, we’re here to provide the clear, practical legal support your business needs.

Ready to discuss your business relocation? Contact our team today for a consultation about your specific situation.